The Northern Territory Government will expand power supply facilities at the Owen Springs Power Station in Alice Springs with a $75million upgrade.
The expansion will also see the retirement of the Ron Goodin Power Station at the end of 2017.
NT Chief Minister, Adam Giles, said, “The Ron Goodin Power Station is at the end of its useful life and needs to be retired and the Owen Springs Power Station located 26km outside of Alice Springs is the appropriate location to replace that capacity.”
“This is an important investment in essential services in Alice Springs that will increase the reliability and efficiency of power supply and put further downward pressure on electricity prices,” Mr Giles said.
A nine month tender process for expanding the plant has already been undertaken and Territory Generation selected Clarke Energy to deliver the project.
“Clarke Energy will supply and install GE’s high efficiency Jenbacher reciprocating gas engine generators,” Territory Generation CEO, Tim Duignan said.
“The performance of this equipment has been well proven in remote Australian conditions similar to the environments at Owen Springs Power Station.”
The construction phase of the expansion will also create around 49 direct full time jobs in Alice Springs.
NT Treasurer, David Tollner, said the expansion will give Alice Springs residents increased confidence in their power supply and create high efficiency power plants with improved environmental outcomes.
“Once works are complete we will see a significant reduction in maintenance and operating costs, and a reduction in noise and carbon emissions,” Mr Tollner said.
“These efficiencies should also see wholesale electricity price reductions of around 15-20 per cent.”
Mr Giles said the expansion of Owen Springs Power Station is in line with other electricity reform programs implemented by the Country Liberals Government to deliver efficiencies in supplying electricity in the Territory.
“We are delivering, and will continue to deliver improved management of costs in all parts of the Territory electricity supply chain,” Mr Giles said.
“It’s all part of the Country Liberals Government’s plan to deliver more jobs, better services and improve our unique way of life in the Territory.”
The expansion will add 41 MW of gas fired spark ignition reciprocating power. Works at the plant are due to start this month and be commissioned by December 2017.